Ivan Kaufman’s Real Estate Blog

This week’s multifamily roundup provides insights on the top housing trends to watch this year, the impact of labor shortages on apartment development, and economic growth prospects in 2019 and beyond. First, MultifamilyBiz discusses the five trends set to impact the industry, including smart technology and 5G wireless capabilities. Next, Real Capital Analytics reports that the apartment sector had the strongest price growth of all property types at the end of 2018, but at a slower pace than at the start of the year. Arbor’s Chatter blog analyzes the most expensive markets for renting in the U.S., noting that many of the priciest cities are in California. Then, NREI examines how a shortage of construction workers is delaying multifamily development, at a time when the industry is in need of new supply. Finally, Fannie Mae reports that economic growth is expected to slow to 2.2% in 2019, according to its latest Economic and Housing Outlook.

“Today’s communities are filled with smart home technology, hotel-like interiors, in-building retailers, and – believe it or not – there are even more exciting developments to note as we head into 2019.”

This week’s multifamily roundup takes a look at shifts in renter, buyer and seller sentiment, the top markets for rental inventory growth, and how elevated supply levels will impact the apartment market. First, Trulia notes that changes in housing trends, such as slowing home price appreciation, are causing younger would-be buyers to be less optimistic about homeownership. Next, Forbes reports that more than 1 million Americans will be priced out of the housing market in 2019, with mortgage rates increasing throughout the last year. Arbor’s Chatter blog analyzes the top markets for multifamily supply growth, noting that smaller metros are seeing the greatest increases in small and large apartment inventory. Then, Mortgage Bankers Association reveals the results of its 2019 outlook survey, which found that more than half of the top commercial and multifamily firms expect mortgage originations to increase this year. Finally, RealPage observes that 2018 markets the fifth consecutive year of U.S. delivery volumes reaching more than 250,000 units, with no signs of slowing down in 2019.

“The share of young Americans that say homeownership is part of their personal “American Dream” is falling, likely driven lower by increasing housing costs and a series of obstacles—from student loan debt to unsteady employment—that their older peers don’t have to contend with.”

“Home prices have been on a steady uptick since 2012, rising 7.7% just last year alone. Mortgage rates, aside from a small blip over the last few weeks, have also been on a tear, jumping more than 60 basis points across 2018.”

“When analyzing the top markets for rental growth in the context of market segment peers, smaller metros registered impressive gains in both small and large multifamily as a share of total rental inventory.”